Results tagged “Mervyn King” from Business Insider Blog
In the wake of the 1929 stock market crash, banks in the United States were banned from mixing commercial and investment banking for more than 60 years.
The first of two Bills which made up the Glass-Steagall Act was brought into law in February 1932 in an effort to curb deflation and increase the US government's ability to provide financing to the banking sector.
This was followed by the second Act, passed in June 1933 separating banking types according to their business.
The argument being the new law would protect shareholders from undue risks made by the investment side of the business which investors had no voting control over.
But the separation of investment and commercial banking enshrined in the Glass-Steagall Acts of 1932 and 1933 were repealed in 1999.